California Centers

MAR 2018

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

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12 California Centers Magazine | March 2018 C C enthusiasts the world over; and a new generation of fans, thanks to the hit show "Big Little Lies", which also has literary roots. This is great news for the "big fish" like American Assets Trust, which have managed to set up shop here. The company's 675,678-square-foot Del Monte Center is the area's only region- al shopping center within a 24-miles- radius. The outdoor center features 75 national and regional retailers, includ- ing Apple, Williams-Sonoma, Whole Foods, Kara's Cupcakes, Thinker Toys and Green's Camera World. Much of the center's success is due to its long history with the city and continued improvements. The center opened in 1967 and underwent renovations and expansions in 1987 and 2007. Schoeder believes it's this kind of forward thinking that has given a few key landlords and tenants a literal key to the city, with land in the 1960s through '90s acting as Monterey's own version of the Gold Rush. "The benefits to investors are that you don't see an oversupply here," he says. "There is less competition. You really won't have someone go down the street to look for a lower price or a wider selection of merchandise. For retailers, your competitors just can't come in. You can specialize in differ- ent categories. You have little risk of a category killer moving in next door because the opportunities are not there." Just Moved The retail monopoly Monterey is (and has been) experiencing doesn't just apply to tourists. Though they outnumber residents 10 to 1, experts agree you shouldn't bet against the home team. The average household income is $83,117, and the captured audience can mean big business for a select few. "Costco has done very well," Schoeder continues. "There are no other competitors to Costco here. The Home Depot has also done extremely well. Lowe's is trying to get in here but they can't find a location." True to its coastal atmosphere, the Monterey community also favors its mom and pops — some of which have been around for decades. "The mom and pops in Monterey have a nuanced understanding of their community," Rusher says. "In a market like Monterey, the locals sup- port those businesses because they know those people and want to sup- port their community. In addition, tourists, who tend to be more affluent here, come to an area like Monterey to escape the national chains." Schoeder points out, however, that these retailers tend to be in older buildings by the very nature of the fact that they've been around for decades, before the water moratorium and enti- tlement processes got out of hand. "Mom and pops do bring in more local traffic," he says. "But because construction costs are so high, mom and pops would not be able to afford to go into anything new around here. Triple-net, from scratch, would be at TODAY'S IDEAS. TOMORROW'S REALITY. Civil Engineering | Surveying | Construction Management | Entitlement Services | 949.610.8997 | Newport Beach, CA Uptown Monterey is a 25,319-square-foot center with retailers Trader Joe's, Peet's Coffee, Chipotle and Massage Envy.

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